With a new Congress in session and a new presidential administration set to take office, industry trade organizations are clamoring to make their voices heard at the federal level. One of the largest trade groups representing consumer banks is advocating for a laundry list of reforms to consumer financial protection rules and regulations while the country’s largest credit union advocacy group is concerned with preserving its members’ tax-exempt status. Read about these developments and more in this roundup:
CBA recommends host of CFPB reforms under new administration
The Consumer Bankers Association (CBA) published a white paper outlining several recommended changes to the Consumer Financial Protection Bureau (CFPB) and the regulations it enforces. The report urges the incoming Trump administration to reconsider several interpretive rules used in the bureau’s supervisory and enforcement work and to state that private parties should not assume that those interpretations represent the bureau’s current understanding of the law. Specifically, the trade group is recommending the new administration repeal all “improper” guidance, including the overdraft opt-in practices described in the Dodd-Frank Act 1034(c) Advisory Opinion and Circular 2024-05, and extend the effective date for the overdraft final rule, rescind the rule and issue a new proposal. Other rules the organization believes should be rescinded include the credit card late fee rule and the data privacy rule, implementing Sec. 1033 of Dodd-Frank. Read more here.
ACU tells Congress credit union tax status should not change
Ahead of the first tax reform hearing of the 119th Congress scheduled, America’s Credit Unions (ACU) wrote to leaders of the House Ways and Means Committee to express the views of the trade group’s members that the credit union tax status brings significant benefits to consumers and communities. America’s Credit Unions President and CEO Jim Nussle emphasized how credit unions meet the needs of Main Street through their unique structure, mission, and community focus. The Jan. 14 hearing was the first in an expected series of hearings this year, with several provisions of the Tax Cuts and Jobs Act set to expire at the end of 2025. Read more here.
MBA offers to assist people impacted by California wildfires
Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit released a statement expressing “solidarity” with the people affected by the wildfires in Southern California. He said MBA is ready to offer assistance where possible and work with state and federal governments in doing so. MBA has a disaster recovery resource guide, containing information for homeowners affected by wildfires, including recommendations for what to do immediately after a disaster, starting with contacting their mortgage servicer and homeowners insurance company, as well as applying for disaster assistance with the Federal Emergency Management Agency. Read more here.
ICBA commemorates 23rd dividend distribution from Travelers insurance program
The Independent Community Bankers of America (ICBA) announced that its Travelers ICBA insurance program has distributed almost $85 million to participants since its inception in 1983. The latest distribution was the 23rd consecutive dividend delivered to participants in the plan, which includes 1,100 community banks across the country that are set to benefit from this year’s dividend based on their 2023 program involvement. The program supports participating banks in managing and mitigating risks through an extensive suite of insurance products.